Know Your Customer (Kyc)
| Financial institutions are required to perform specific identification and background checks on their clients, known as Know Your Customer (KYC), before allowing them to use the platform's services. This regulation is designed to protect the institution and its clients from fraudulent activity. The first step of the KYC process is to identify the customer. The financial institution will need to collect some basic information about the customer, such as name, address, and date of birth. The institution will then use this information to run a background check. This check will look for any red flags that may indicate the customer is not who they say they are, or that they may be trying to commit fraud. If the background check comes back clean, the financial institution will then need to verify the customer's identity. This can be done through a variety of methods, such as requiring the customer to provide a government-issued ID or a utility bill. Once the customer's identity has been verified, the institution can then provide them with access to the platform's services. The KYC process is an important part of keeping financial institutions and their clients safe from fraud. By taking the time to properly identify and background check their customers, institutions can help to prevent fraudulent activity before it happens. |
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